What do you need to build a good economy? and good companies?

Having a good economy is having the means to provide a good life to the people. You get those means either by producing them inside or by getting them from outside, providing something in return. An economy starts with a need for consumption, and is solved by production. Companies exist to facilitate this process.

What do you need to build a good economy, and good companies in this economy? Here is a list of ten fundamental principles.

Motivated, driven people

You need motivated people. You can give capital to unmotivated people, they won’t do anything concrete with it.

Smart, capable people

You need smart and capable people. You can give capital to incapable people, they won’t do anything great with it.

Collaboration

You need people who get along with each other and can collaborate. If people can’t collaborate, they won’t produce anything great*.

Usefulness

You need to produce things that are useful, that people want. You can produce a lot, if nobody wants it, you have produced for nothing and put your economy or company at risk.

Unique value proposition

In a competitive landscape, you need an advantage or a unique value proposition, to not get outcompeted by other producers.

Distribution

You need to distribute the things that are produced in an effective way. If you can’t distribute what you produce, production will be wasted. In a competitive landscape, distribution is an important differentiator. Distribution also facilitates collaboration.

Strategy, organization

You need strategy, organization. You can have important capital, if you pursue the wrong path or are badly organized, you won’t produce much or will produce the wrong thing.

Adaptability

You also need the ability to react and adapt, if you can’t adapt and continue to apply a strategy that is not valid anymore in the current conditions, you’ll get the same bad results.

Culture, rules

You need a culture and a set of rules that everyone follows, and that drive and support the development of a good economy (or company). Without a framework, clear rules and fair enforcement, activities become risky and limited, and people are less driven. Good cultures and rules enable drive, trust and collaboration.

Investment

You need means to finance (long-term) initiatives before they generate returns, e.g. education or infrastructure. This capital must either be generated internally or obtained from external sources.

* with the exception of some artists, scientists and philosophers perhaps